Elon Musk is set to buy Twitter for $44 billion

Twitter announced that it has agreed to sell the company to Elon Musk for around $44 billion.

According to the terms of the agreement, shareholders would get $54.20 in cash for each share of Twitter shares they hold, which matches Musk’s initial offer and represents a 38% upside well over share value just before Musk disclosed his share in the company.

Musk stated in announcing his acquisition plans that he intends to “make Twitter better than ever” by “improving the platform with additional features, opening up the algorithms to boost trust, beating spambots, and authenticating all humans.”

Last week, Musk revealed that he had secured $46.5 billion in funding to buy Twitter, an apparent turning point that prompted the company’s board to seriously examine the purchase. The board met on Sunday to consider Musk’s offer.

Twitter’s executive board unanimously approved the purchase, which is scheduled to close this year.

In a statement, Twitter independent board chair Bret Taylor stated, “The Twitter Board conducted a thoughtful and comprehensive process to review Elon’s proposal with a deliberate focus on value, predictability, and finance,” calling the acquisition “the greatest way forward for Twitter’s stockholders.”

According to Forbes magazine, Musk is the world’s richest person, with an average net worth of $273.6 billion, owing primarily to his ownership of electric automaker Tesla.

Following the announcement of the acquisition, Twitter shares were up about 6%, hovering around $51.84, slightly below the offer price.

Shareholders and regulators must both approve the acquisition.